I posted this on another forum and thought I would like input from my fellow Sigforum members too. I've been thinking about this a lot lately, especially as my lifelong responsible savings will be impacted. What affect do you think President Biden's student loan forgiveness will have on your IRA or mutual fund or savings and investments in general? My intent isn't that this be a "Biden sucks" thread. To me, that is a given. I want people's input on the affects you think it will have and what, if any, steps are you are taking to protect your retirement savings?

Be mindful that the student loan forgiveness won't just be waiving a magic wand and the debt will be gone. That would make the Great Depression look like an economic boom. It will be we taxpayers paying back those lending institutions, universities and the government.

I can't see how it would immediately affect investments. It would likely increase the deficit, as does the stimulus, and and as did the tax cuts. That eventually may result in inflation and or a weaker currency, which would affect investments. But that would take a while. Certain investments would appreciate if we have inflation. Note how real estate, gold, crypto, natural resources/commodities etc have all been appreciating of late. Traditional safe havens like cash and bonds would suffer if we have inflation. I think broad loan-forgiveness is a bad idea, and I hope it does not happen. It sets a terrible precedent. What about all of the responsible students that worked hard and paid back their loans? It's a slap in the face.

I worked my way through college working 5 nights a week so I could avoid borrowing.

This message has been edited. Last edited by: FishOn,

I’m hoping none. Just before January 20th, I heard him speak. My impression was free collage and healthcare would not be possible with the Congress we have now.
However he seems a little aggressive now.

I am sorry this shit belongs in the Biden thread of nightmares. You really think this socialist idea will cme to fruition? Please hide it in the long running Biden thread!

quote:

Originally posted by ZSMICHAEL:
I am sorry this shit belongs in the Biden thread of nightmares. You really think this socialist idea will came to fruition? Please hide it in the long running Biden thread!

^^^ yes ^^^

The less that I see that crooked dipshits name the better.

Seems like a straight kick to the balls.

I went from High School to the Air Force.
Put away money to pay for my education with the Veterans Education Assistance Program (VEAP).
For every dollar I put in, believe I got two back.

Now we have invested in 529’s and put away money for our daughters education.
Been paying for our two daughters to go through schooling at most economical University in the state.

We didn’t want to saddle our daughters with a loan hanging over their heads upon graduation.
This took sacrifice, forget those Caribbean Cruises, we saved and put money towards our families education.

Now I am being played the chump, working, saving, and sacrificing to pay for other families education.
Getting pretty tired of this wealth transfer.

What it is, is stealing my life’s work to pay for others to enjoy that which I have worked for.
When is the Tea Party, it’s getting to be time to board the boat and throw the tea into the harbor.

I think this is going to go badly, my wife, who always pays her bills for the last 30 some years, wants them to pay my daughters final tuition. He's dragging 'em on the train!!

Another costly voter buying program. Total bullshit as I've paid off every fucking loan I've ever taken. Do you guys really think it's going to stop at $50K? Not a chance in hell.

I don't know how it will impact investments in a few year time frame.

My concern is the likely friction induced re those who already sacrificed to pay their own student loans. I have a couple of relatives (doctor and lawyer) who converted their notable size student loans to non student loans, some more favorable conditions. How will those be handled??

Also, will it encourage more to take out student loans to pay for useless degrees?? Sees to me it will likely fertilize the entitlement committee who will demand more $$ from gov't.

^^^ Yep, it's called Double Jeopardy and will only incentivize a larger pool of lazy asses to demand $ to pay-off their worthless degrees in the history of Jehri Curl. A huge entitlement program that increases the size of the Federal Gov't.

I think forgiving the loans means the banks will get paid off, so financial stocks like bank should go up?

quote:

Originally posted by mikeyspizza:
I think forgiving the loans means the banks will get paid off, so financial stocks like bank should go up?

I think there's a time frame involved. In the big picture, the more socialistic our economy becomes (ie, the more involvement the gov't has in running the show), the more our economy weakens.

quote:

Originally posted by kimber1911:
Seems like a straight kick to the balls.

I went from High School to the Air Force.
Put away money to pay for my education with the Veterans Education Assistance Program (VEAP).
For every dollar I put in, believe I got two back.

Now we have invested in 529’s and put away money for our daughters education.
Been paying for our two daughters to go through schooling at most economical University in the state.

We didn’t want to saddle our daughters with a loan hanging over their heads upon graduation.
This took sacrifice, forget those Caribbean Cruises, we saved and put money towards our families education.

Now I am being played the chump, working, saving, and sacrificing to pay for other families education.
Getting pretty tired of this wealth transfer.

What it is, is stealing my life’s work to pay for others to enjoy that which I have worked for.
When is the Tea Party, it’s getting to be time to board the boat and throw the tea into the harbor.

This is the post of the day, and reflects my thoughts exactly.

For those of us who worked our way through school, it's indeed a kick in the nuts.

Complete bullshit.

I joined the service and part of my pay was deducted for my GI bill. I used it decades later and it financed my police academy and then my bachelors degree in criminal justice. Since then Mrs Mike and I have saved money for the Tomminator in a 529...so far there is around 48k in it...and he’s 12....

When I went to night school I saw shitbags who gamed the system by getting into class due to their (check box here, black, female,Native American,Pacific Islander, etc)and then ditching the class after they got their grant money after three classes. So now every swinging dick who took female studies or art appreciation or some other useless study is gonna get a pass.!!

This guy can’t stroke out soon enough. God damned commies. When are we gonna start tarring and feathering them and riding them out on a rail. Fuck my BP is prolly thru the roof now..I wish I hadn’t opened this thread

quote:

Originally posted by MikeinNC:

This guy can’t stroke out soon enough.

Be careful what you wish for. Remember, he is the only thing standing between us and Harris.

I worked my butt off in HS, got scholarships, and chose a college I could afford instead of the one I really wanted. I worked all through college, and so did my wife. I watched others in my class use student loan money to buy cars and pay for vacations. I didn't do that. I had a crappy old van that broke down all the time. I fixed it myself, and when I had to save up for parts I rode my bike to work and class.

I wasn't completely on my own. My parents helped me some, and so did my grandparents (probably about 10% between them). My parents took out one $3000 parent loan...that one was the first one I paid off, and it was done while I was still in school. I was married and working full-time by my sr. year, and paying off loans as we could. My wife was also working, took cheaper classes online in addition to her regular courseload so she could graduate a semester early (saving $12,000), and all our loans were paid off 6 months after graduation. We worked our butts off...didn't party and goof off...and I don't see why my tax dollars should go to pay for other people's kids to do that.

There are plenty of options out there to get an education and not mortgage the next 30 years of your life. It may not be exactly what you want, and it may take hard work, but they're out there. Go to community college, at least for the first few years. Take night classes. Apply for grants and scholarships. Stuff is out there. I worked for a private liberal arts college for 10 years, so I'm quite familiar with how the system works.

Here's the other thing a lot of people don't want to hear...if you're going to go to an expensive school, you'd better go prepared to work hard while you're there and have a plan to land a job as a result that will justify (and quickly pay for) that tuition cost. But paying $150,000 for a history degree from a liberal arts school so you can go work at Wal-Mart (believe me, I've seen it plenty) just doesn't make any sense. Nothing wrong with working at Wal-Mart...it's honest work...but you don't need to rack up $50-$100,000 in debt to go do that.

My SIL is still paying off loans for a master's degree that she never finished. They have a kid now, and she'd like to stay home, but she can't afford to because they have to pay on that loan. My wife now watches my nephew for free 3-5 days a week because his mom has to work. Life choices have consequences.

So no, I don't think we should forgive student debt. If you chose to go into debt, you also have the responsibility of paying it off. It increases the tax burden of everyone else, will contribute to inflation (along with a bunch of the rest of his crappy policies), and more importantly continue to undermine any semblance of personal responsibility that is left in this country. Whether it has a direct effect on the market or not, there will be wide reaching long term effects that will be very negative.

So my only question is when do I and everybody posting above me here get our checks? I paid all my student loans off already, so I get a refund right?

As for the question regarding the stock market. It will pump money into the economy. Just like the stimulus payments, but it's a monthly payment for years. People who are saving $600 a month for multiple years will likely get a new car or a better house. One thing they won't do with the money is save for their kids education because they've just be taught that it is pointless to worry about your own personal responsbilities.

I'm waiting for the mortgage relief act to along with it. Do you know what a burden it is to make house payments? C'mon man, the government should be doing that for us.

My parents couldn't afford to send me to college so I went in the Army to get the G.I. bill.

Then when I got out, I went to college on the G.I. bill plus I worked close to 40 hours a week at the same time and got no debt whatsoever.

I want my money back with interest.

But getting back to the OP, I don't see where this will have any significant impact on investments.

quote:

Originally posted by smschulz:

quote:

Originally posted by ZSMICHAEL:
I am sorry this shit belongs in the Biden thread of nightmares. You really think this socialist idea will came to fruition? Please hide it in the long running Biden thread!

^^^ yes ^^^

No. This does not belong there. It's not a "Biden is a moron thread". He's a moron. That really goes without saying. The intent for this thread, as stated within the OP, was to get other people's input on the financial ramifications of such an idiotic policy. That's the nice thing about Sigforum, there are a larger than usual set of reasonably intelligent people in our membership. I, and others, would probably like their input. Anyway, although I called it a Biden policy, we all know it is a democrat policy that they intend to implement.